PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE
C1CHAPTER V COMPUTATIONAL PROVISIONS
Deductions
79AF1 Contributions to training and enterprise councils and local enterprise companies.
1
Notwithstanding anything in section 74, but subject to the provisions of this section, where a F11company carrying on a F12trade or profession makes any contribution (whether in cash or in kind) to a training and enterprise council, F2business link organisation or a local enterprise company, any expenditure incurred by F13the company in making the contribution may be deducted as an expense in computing the F6profits of the F12trade or profession for the purposes of F14corporation tax if it would not otherwise be so deductible.
2
Where any such contribution is made by F9a company with investment business any expenditure allowable as a deduction under subsection (1) above shall for the purposes of section 75 be treated as expenses of management.
F102A
Where any such contribution is made by a company in relation to which section 76 applies (expenses of insurance companies) any expenditure allowable as a deduction under subsection (1) above shall for the purposes of that section be treated as expenses payable which fall to be brought into account at Step 1 in subsection (7) of that section.
3
Subsection (1) above does not apply in relation to a contribution made by F15any company if either the company or any person connected with the company receives or is entitled to receive a benefit of any kind whatsoever for or in connection with the making of that contribution, whether from the council, F3organisation or company concerned or from any other person.
4
In any case where—
a
relief has been given under subsection (1) above in respect of a contribution F16made by a company, and
b
F19the company shall in respect of that F17accounting period be charged to F20corporation tax under Case I or Case II of Schedule D, or if F21the company is not chargeable to F20corporation tax under either of those Cases for that period under Case VI of Schedule D, on an amount equal to the value of that benefit.
5
In this section—
F4aa
“business link organisation” means any person authorised by or on behalf of the Secretary of State to use a service mark (within the meaning of the Trade Marks (Amendment) Act 1984) designated by the Secretary of State for the purposes of this paragraph
a
“training and enterprise council” means a body with which the Secretary of State has made an agreement (not being one which has terminated) under which it is agreed that the body shall carry out the functions of a training and enterprise council, and
b
“local enterprise company” means a company with which an agreement (not being one which has terminated) under which it is agreed that the company shall carry out the functions of a local enterprise company has been made by F7. . . Scottish Enterprise or Highlands and Islands Enterprise.
6
Section 839 applies for the purposes of subsections (3) and (4) above.
See—1979(C) s.122—election to take capital gain or loss into account when asset appropriated to stock in trade.1989 ss.67-74—employee share ownership trusts.Banking Act 1987 (c.22) s.66—contributions to the Deposit Protection Fund.